How does a voluntary repossession of a vehicle hurt me?

A voluntary repossession will be put onto your credit report and as such, will make your credit score lower. Also, it really does not help much, other than possible avoiding a claim for some of the costs of repossession. After a vehicle is voluntary repossessed it will be sold by the lender at auction, and if the purchase price at the auction is less that what you still owe on the vehicle, the lender usually files a lawsuit against your for the difference. Thus, voluntarily taking the car to the lender or dealer, rather than having them come to your home or employment to repossess the vehicle, only saves the possible claim for towing costs and any embarrassment when the tow truck drives off with your car and the neighbors are watching.